Gold Producer Samples High-Grade Antimony in Expanding Utah Gold System

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Heliostar Metals Ltd. (HSTR:TSX.V; HSTXF:OTC; RGG1:FRA) reported results from its first exploration campaign at its wholly owned Goldstrike property in Utah, according to an August 20 release.

The opening phase featured channel, rock-chip, and soil sampling around a former antimony-producing mine, while the company has now moved into the drilling stage.

"The acquisition of Goldstrike was completed with the intention of building our longer-term gold production profile," Chief Executive Officer Charles Funk said. "In addition to the project's 975,000-ounce indicated gold resource, Goldstrike holds critical mineral potential that may enhance the economic profile and development timelines for the project. To test this potential, the company has undertaken systematic sampling in areas of limited outcrop, and has both confirmed high grades at Antimony Ridge and discovered a new zone over 1,700 meters further west at Antimony Knoll. Today's reported results demonstrate an even larger Carlin system with new gold and antimony results over four kilometers east of the current gold resource. The company has commenced drilling at Goldstrike and will test the antimony and gold potential of both Antimony Ridge and Antimony Knoll, with results expected in Q4 this year."

Heliostar has finished 27 channel samples across Goldstrike, including 11 collected at approximately 25-meter intervals along an historic road cut that exposes outcrop near the former producing mine. The company said it also gathered four additional groups of channel samples at roughly 135-meter intervals at Antimony Knoll, located about 1.7 kilometers to the west. In total, 21 of the channel samples produced anomalous gold and antimony values.

At Antimony Ridge, Heliostar used channel and rock-chip sampling to evaluate antimony mineralization within a prospective geological horizon covering approximately 900 by 450 meters, the release noted. The work identified anomalous gold and antimony mineralization across 205 meters of strike within the favorable stratigraphic sequence, with the zone remaining open beneath overlying cover and along trend. The prospective rocks consist of Tertiary Claron Formation siliciclastics and limestone capped by the dacitic Needles Range Tuff, while the Claron Formation hosts a significant portion of the gold mineralization included in Goldstrike's mineral resource.

The mineralization at Antimony Ridge consists of stibnite and stibiconite, an antimony-oxide mineral formed through stibnite weathering, occurring as bands parallel to bedding, pods, and veins. Gold and antimony occur within shallowly northeast-dipping, strongly silicified conglomerate and limestone of the Claron Formation near its contact with the overlying Needles Range Tuff. The mineralized zone remains open both down-dip and along strike, except toward the southwest, where a northwest-trending normal fault cuts it off. A second northwest-trending fault repeats the prospective Claron Formation sequence to the northeast, where sampling returned 0.8 meters grading 0.33 grams per tonne ("g/t") gold and 1.00% antimony.

Heliostar's initial field program at Goldstrike combined geological mapping with systematic sampling to improve the understanding of Antimony Ridge and identify additional exploration opportunities. This work highlighted Antimony Knoll as a high-priority target, prompting further channel sampling in the area. Several samples returned elevated antimony values, including 0.6 meters grading 1.11% antimony, supporting the area's exploration potential.

Antimony Knoll occurs within a fault-displaced block of the same Claron Formation and Needles Range Tuff sequence identified at Antimony Ridge, approximately 1.7 kilometers to the west. At Antimony Knoll, stibiconite mineralization occurs within limestone-rich units of the Needles Range Tuff and remains open both along strike and down-dip toward the northeast.

Drilling Program Underway

Following encouraging surface sampling, Heliostar said it has started a reverse circulation (RC) drilling campaign targeting both Antimony Ridge and Antimony Knoll. The company said it has completed 852 meters across eight holes as part of an initial program expected to total approximately 1,500 meters. Geologists are logging drill cuttings as drilling progresses and using handheld X-ray fluorescence (XRF) instruments to obtain immediate geochemical information. Heliostar expects to report assay results from the campaign in Q4 2026 and has allocated US$2.0 million for drilling and other Goldstrike exploration work during 2026.

Beyond seeking an economically significant antimony deposit, Heliostar is examining antimony and other pathfinder elements in relation to the nearby Goldstrike gold resource. With several mineralized zones extending across nearly six kilometers of strike, the company is assessing the property through a broader regional model aimed at understanding the controls on mineralization within the Carlin-style system. Continued field exploration will also focus on determining whether Goldstrike's existing resources can be expanded.

Since completing its acquisition of Goldstrike on March 23, Heliostar said it has obtained the property's historical data and is consolidating and digitizing the information into a unified database. The geological team is also reviewing earlier exploration and technical work to develop a program capable of advancing the project toward a future economic assessment.

Heliostar reported an updated Goldstrike resource on March 24, comprising 65.804 million tonnes grading 0.46 grams per tonne (g/t) gold for 975,000 indicated gold ounces, along with 8.86 million tonnes grading 0.31 g/t gold containing 90,000 inferred gold ounces.

Report: Cash Generation Keeps Company Ahead

In an August 19 note, Caesars Report said Heliostar Metals is using the strong gold price to build its balance sheet while its two producing Mexican mines generate cash. In the June quarter, Heliostar produced 14,803 ounces of gold and about 79,700 ounces of silver but, due to a sales-timing lag, sold only 11,960 gold and roughly 53,000 silver ounces before quarter-end — a delay in revenue rather than a problem, the report notes, since prices held above US$4,000/oz gold into July. Selling gold at about US$4,400 an ounce, the company posted Q2 revenue of US$56.5 million and mine operating earnings above US$31 million.

The reported ~US$8 million profit (US$0.03 EPS) understated underlying performance, Caesars argues, skewed by non-recurring or non-cash items: ~3,000 gold-equivalent ounces produced but unsold, a US$3.45 million non-cash share-based compensation charge, and a high ~55% effective tax rate expected to ease. The cash picture was stronger — the report pegs H1 underlying operating cash flow at ~US$40.5 million and, after US$14.2 million of capex, underlying free cash flow above US$26 million, enough to fund the US$10 million cash portion of the Goldstrike acquisition. Heliostar ended June with ~US$46 million in working capital, including US$43 million in cash.

That cash generation lets Heliostar pre-order long-lead equipment for its Ana Paula project in Guerrero ahead of the definitive feasibility study (expected Q2 2027) and investment decision (summer 2027), heading off supply-chain delays. Ana Paula's US$300 million initial capex implies roughly US$120 million of equity under a 40/60 structure — largely covered from cash — with first gold possible in Q4 2028. Caesars notes full-year 2026 guidance was reconfirmed (50,000–55,000 gold ounces, 290,000–320,000 silver ounces, AISC $2,025–2,125/oz), with the elevated Q2 AISC framed as a temporary artifact of the sales lag.

The through-line, per Caesars, is that Heliostar's contrarian acquisition strategy is bankrolling its ambition to reach 500,000 ounces of annual gold production by 2030, versus ~50,000 this year. As the report puts it:

"Heliostar's 2024 bet/strategy to buy older, almost-depleted mines for a song is paying off handsomely," Caesars Report noted. "And in hindsight, it absolutely was the right decision to pursue fast and immediate cash flow generation to support its ambition to become a 500,000-ounce gold producer by 2030."

Two Analysts Weigh In on Heliostar's Q2

Heliostar Metals' (HSTR) Q2 results strengthened its cash-flow bridge to the Ana Paula growth project, an August 21 note from Stonegate Capital Partners Analyst Dave Storms said. Gold output rose 26% q/q to a record 14,803 ounces — San Agustin up 49% to 7,216 oz at steady state, La Colorada adding 7,587 oz at US$1,641/oz AISC — driving revenue of US$56.5 million and mine operating earnings of US$31.1 million. Net income slipped to US$8 million from US$14.1 million on the annual option grant, taxes, and FX rather than weaker mines, while cash rose to a record US$43 million (after the US$10 million Goldstrike payment) with no debt. Full-year guidance held at 50,000–55,000 ounces at US$2,025–2,125/oz AISC. At Ana Paula, US$5.6 million of Q2 spend and infill drilling (99.8 m at 10.9 g/t gold) advance a Q2 2027 feasibility study toward a 10-year mine life, with first gold targeted before year-end 2028.

The note from Storms carries no formal Buy/Hold rating, deriving its target from valuation ranges instead. Applying an EV/NAV range of 0.4x to 0.6x, with a 0.5x midpoint, Storms arrives at a valuation of US$2.30 to US$3.37 and a mid-point of US$2.84 — roughly CA$3.17 to CA$4.65 at the report's 1.38 CAD/USD rate. Its EV/Reserves method gives a US$2.97 midpoint and its DCF US$2.52, pointing to a fair value around US$2.80.

An August 10 note by Jonathan Guy of Hannam & Partners said Heliostar Metals' Q2 2026 results beat the analyst's forecast, with gold production of 14.8koz topping the 13.1koz estimate on stronger-than-expected output at La Colorada, while AISC of US$2,287/oz came in line. Full-year guidance was maintained at 50koz–55koz of gold and 290koz–320koz of silver (the analyst models 53koz and 305koz at US$2,050/oz AISC), and Heliostar closed the quarter with a solid US$43 million in cash and no debt. Near-term catalysts include further exploration results, the start of Ana Paula decline development in H2 2026 ahead of the H1 2027 feasibility study, integration of the newly acquired Goldstrike project, and operations reaching the guidance run rate. The analyst values Heliostar at CA$7.31 per share — implying 264% upside — trimmed slightly from a prior CA$7.43 after updating for the results.

At La Colorada, production rose 10% QoQ to 7.587koz of gold as the mine shifted to injection and residual leaching, with AISC down 4% to US$1,641/oz; waste stripping at the Veta Madre pit begins this month, set to drive production from Q2 2027. San Agustin lifted output 48% QoQ to 7.216koz, and though the analyst assumes depletion in 2027, an ongoing 15,000–18,000m drill program targets oxide resources to extend its life. Ana Paula remains the growth engine — first gold in H2 2028, an NAV of US$1 billion and peak production of 141koz at US$1,106/oz AISC — with recent infill drilling returning highlights such as 99.8m at 10.9 g/t gold.

Guy wrote that the drill results point to Ana Paula becoming "a larger, longer-life asset than currently envisaged." The CA$7.31 target rests on DCF-derived NAVs (5% discount rate) that produce a risk-weighted operational NAV of US$1.678 billion.

According to TipRanks, Roth MKM's Mike Niehuser maintained his Buy rating with a US$3.79 price target on August 13.

The Catalyst: Gold, Precious Metals Are on a Tear

Gold and silver have delivered notable advances in August, with gold gaining 15% and silver climbing 19%, according to an August 24 article by Yahoo! Finance Executive Editor Brian Sozzi. Bull Theory analysis estimated that the combined rally has increased the two metals' total market value by nearly US$5 trillion, although neither has reclaimed the record highs established earlier this year.

Several factors have helped drive the precious metals rally, including shifts in monetary policy, rising geopolitical tensions in the Middle East, and ongoing inflation concerns. The U.S. Treasury provided a significant boost to the move after unexpectedly increasing its long-duration bond repurchase program to US$4 billion per session, which sparked substantial short covering and speculative demand for precious metals.

The continuing conflict with Iran has also lifted energy prices and strengthened gold's role as a defensive asset. Silver has benefited from a separate supply-demand imbalance, with industrial consumption increasing across areas such as AI data-center development, power-grid modernization, and sophisticated electronics. Demand from these industries is consuming physical silver at a pace that has outstripped the ability of global mines to replenish inventories.

Truist Chief Investment Officer Keith Lerner has also become more constructive on gold, recently moving his stance to neutral as market conditions improved and the available evidence became less negative.

"Consistent with our philosophy of keeping an open mind and following the weight of the evidence, conditions have improved, leading us to upgrade gold back to neutral," Lerner said. "With gold still about 15% below its recent highs, the evidence now supports a more balanced view."

Gold began August 24 near US$4,650 an ounce as investors continued turning to the precious metal amid concerns over U.S. government finances, Treasury intervention in bond markets, and the durability of the U.S. dollar, according to a report by Amreen Ahmad of The Sunday Guardian updated on August 24.

Gold was on track for a fifth consecutive weekly advance, with gains exceeding 5%, before Reuters reported that the metal reached US$4,677.14 an ounce later in the session, its highest level since early May.

The latest upswing received an initial boost from the U.S. Treasury increasing its purchases of longer-dated debt, an action that helped push bond yields lower while raising questions about greater official involvement in interest-rate markets. The development also strengthened the so-called “dollar debasement trade,” in which investors seek hard assets such as gold as confidence in fiat currencies weakens.

Despite the momentum, gold faces several potential headwinds. The metal remains below its 2026 peak of roughly US$5,602 an ounce, while some physical-market demand measures have underwhelmed. After its August advance, gold also commands a substantially higher valuation, meaning further upside increasingly depends on whether concerns surrounding U.S. fiscal conditions and monetary policy remain entrenched rather than simply extending the latest rally.

The longer-term outlook for gold remains constructive, supported by elevated government debt, dollar concerns, central-bank purchases, geopolitical uncertainty and renewed interest in exchange-traded funds. Reuters reported that gold-backed ETFs attracted 46.7 metric tons of inflows worth approximately US$6.4 billion in the latest week, marking their strongest weekly inflow in 10 months, Ahmad wrote.

Technical indicators also point to further potential upside, with gold moving above its 200-day moving average and testing the US$4,700 area. A sustained move above that level could put approximately US$4,770 in focus, followed by the US$4,855-US$4,894 range. At the same time, weaker physical demand remains a concern, with one market analysis showing second-quarter gold demand falling to 942 tonnes, its lowest quarterly level since Q3 2021, suggesting financial-market activity has played a major role in the latest advance.

Ownership and Share Structure¹

Management and Insiders own about 2.46% of shares, while Strategic Investors own 13.65%. Institutions hold 23.78% of shares, and the remaining shares are retail.

Heliostar Metals Ltd. has a market cap of CA$647.11 million, with 279.43 million shares outstanding. The company's 52-week range is CA$1.30-CA$3.47.

Common Investor Questions

What did Heliostar Metals announce? On August 20, 2026, Heliostar reported results from the first exploration campaign at its wholly owned Goldstrike property in Utah — channel, rock-chip, and soil sampling around a former antimony mine that confirmed high-grade antimony with gold, and said it has begun drilling.

What did the sampling find? At Antimony Ridge, Heliostar confirmed anomalous gold and antimony over 205 meters of strike, including 0.8 m at 0.33 g/t gold and 1.00% antimony. About 1.7 kilometers away, it identified a new zone, Antimony Knoll, where samples returned up to 0.6 m at 1.11% antimony. Of 27 channel samples, 21 returned anomalous gold and antimony. CEO Charles Funk said the results point to "an even larger Carlin system," with new gold and antimony over four kilometers east of the current gold resource.

Why does the antimony matter? Antimony is a critical mineral, and Funk said its presence "may enhance the economic profile and development timelines" for Goldstrike. Heliostar is assessing both a potential standalone antimony deposit and antimony's value as a pathfinder for gold across nearly six kilometers of strike.

What's the drilling status and timeline? Heliostar has started a reverse-circulation program targeting Antimony Ridge and Antimony Knoll, completing 852 meters of a planned ~1,500 meters across eight holes, with assay results expected in Q4 2026. It has allocated US$2.0 million for Goldstrike drilling and exploration in 2026.

How does Goldstrike fit Heliostar's broader story? Goldstrike (acquired in March) is a longer-term growth asset. Heliostar's two producing Mexican mines are generating strong cash flow at high gold prices — Caesars Report estimates more than US$26 million of underlying free cash flow in H1 2026 — which is funding growth (including the US$10 million cash portion of the Goldstrike deal and long-lead equipment for the Ana Paula project) with minimal dilution.